Exam 12: Developing and Managing Products

The final stage in the new-product development process is when the product enters full-scale manufacturing and wide retail distribution. This stage of the new-product development process is:

In the maturity stage of a product lifecycle, differences between competing products diminish as competitors discover the product and promotional characteristics most desired by customers.

Marilyn is a grandmother to three and lives in Oklahoma City. She still uses her DVD player but her grand kids are wanting to watch shows on Netflix when they visit her house. She does have high-speed Internet access but does not yet have a Netflix account. However, she plans to subscribe to Netflix in the next several weeks. Netflix has over 40 million paid subscribers in the United States representing approximately 30% of total United States households. Netflix continues to add several million subscribers every quarter. Which category of "adopter" would best describe Marilyn?

A company sent free samples of its new shampoo to a researched list of potential customers. This strategy is most likely to accelerate the evaluation and trial stages of the consumer adoption process.

Marta's company wants to revamp its potato chips brand to compete with Lay's potato chips. She has been researching consumer preferences so that she can market her company's chips accordingly. What type of strategy is Marta using?

The first step in the new-product development process is:

Like all companies, McDonald's needs to continue identifying, developing, and introducing new products. One recent concept McDonald's identified is a vegan burger. After assessing the concept, McDonald's research and development kitchen developed a vegan burger that they felt would be appealing to the 13% of Americans that are vegetarian or vegan. Before rolling the vegan burger out, McDonald's wanted to examine the viability in the real world, but on a limited basis. McDonald's next step should be to ______ the vegan burger.

On a recent trip to the grocery store, Jackson noticed an in-store tasting event for a new line of yogurt-based dips. The store was providing product sampling and a coupon for 0.50 off the purchase price. Jackson tried the French Onion flavor and liked it so much he decided to purchase it for an upcoming party at his home. Which characteristic influencing adoption rates does this represent?

A tech company is set to release a new watch with a built-in exercise and cholesterol monitor around the holidays. Because the product is new to the market, consumers know very little about it. The company wants to ensure that by the time the holiday season arrives, consumers are well informed and ready to make major purchases. Required: Which of the following steps should the company take to market its new product efficiently?

The Gillette Company has a long history of developing shaving-related products for men and women. In addition, it continuously produces products that feature improvements to existing technologies, including three-bladed disposable razors and ergonomically superior handle designs. ​ To maintain its success in new-product development, Gillette regularly organizes several small focus groups comprising people who shave in order to gain insights into what these individuals look for in a razor/blades/shaving system. At which step of the new-product development process is Gillette when it conducts these focus groups?

External analysis, conducted during the process of benchmarking, involves:

Arm & Hammer has sold baking soda for well over 150 years. While a staple in most homes, a customer only needs so much baking soda! However, Arm & Hammer was able to increase sales by convincing customers that the same baking soda they kept in their cabinet for baking could be put in their refrigerator and freezer to remove odors. Now, customers are buying three boxes of Arm & Hammer baking soda! In this case, Arm & Hammer was able to grow sales through:

A consumer that is aware of a new product and gathered information about the product so he or she can consider the benefits of the new product compared to what he or she currently uses is in the evaluation stage of the new-product adoption process.

Service quality refers to the expected and perceived quality of a service offering.

Special Confectioners, a major chocolate company, has recently started promoting its festive packs with the tag line, "making each moment special." By doing so, the management is trying to make its customers realize the everyday relevance of their festive packs. In doing so, the company is attempting to extend the product lifecycle by:

A _____ strategy focuses on developing entirely new products for new markets.

Hershey's develops new products on an ongoing basis. One of the most successful is Reese's Minis - the miniature Reese's cup without a wrapper. Reese's Minis came from the consumer desire to have a snack that they could eat with one hand. After a brief test market showed wide demand for the product, Hershey's launched Reese's Minis in the _________ stage of the new-product development.

Vandelay Industries has been selling their latex products to the medical community for over a decade. However, George Costanza, the President of Vandelay, has decided that relying on a single product line and single market segment is too risky. George has decided to pursue both new products and new markets in the future. Vandelay Industries is seeking:

Cameron is involved in the new product development process at Bose Corporation. Currently, Cam is assessing the potential market for a noise cancelling system for automotive exhaust. Cam's job is to determine the overall size of the market and projected annual sales of the system. Essentially, he is responsible for determining the overall financial feasibility of this concept before more time and money is invested in developing the system. Cam's analysis is part of the _________ stage of the new product development:

General Electric offers a wide range of products and services for a variety of markets. Not only does GE sell to consumer markets, but to industrial markets as well. The variety of the offering is impressive, from light bulbs to jet and turbo prop engines. General Electric has engaged in: